Overview:
The case involved the U.S. Securities and Exchange Commission (SEC) alleging a "pump and dump" securities fraud scheme. The SEC sought a Mareva injunction in the British Columbia Supreme Court to freeze the defendants' assets in support of U.S. proceedings.

Procedural History:
The SEC obtained U.S. asset-freezing orders in 2021, alongside BC Securities Commission preservation orders. On March 12, 2023, the British Columbia Supreme Court granted a Mareva injunction against Jackson T. Friesen and others, finalized in April 2024.

Legal Issues and Ruling on Mareva Injunction:
Key issues included whether Friesen could access frozen funds for living expenses, legal fees, and taxes. The court considered the extent of financial disclosure required to justify such access. It ruled that:

• The Mareva injunction’s purpose was to prevent asset dissipation, not to secure a plaintiff’s claim.

• Defendants had to demonstrate no other assets were available for expenses.

• Friesen satisfied this burden, showing no other financial resources.

The court varied the Mareva injunction to allow Friesen to access $5,000 monthly for living expenses, $50,000 for Canadian legal fees, and $300,000 for U.S. legal fees.

Outcome and Costs:
The court upheld Friesen’s right to appeal U.S. disgorgement orders totaling $11.8 million, finding the appeal arguable. Friesen’s request to access an additional $125,000 for U.S. legal fees was approved. The court did not award costs to any party.